President Donald Trump signed a bill that extends the amount of time businesses have to use Paycheck Protection Program funds and allows them to use more of the money on expenses other than payroll. More changes are likely and the Consumer Bankers Association and the Bank Policy Institute have called for forgiveness on loans less than $150,000.

Joint statement by SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin regarding enactment of the Paycheck Protection Program Flexibility Act

SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin issued the following statement today following the enactment of the Paycheck Protection Program (PPP) Flexibility Act:
 
“We want to thank President Trump for his leadership and commend Leader McConnell, Leader Schumer, Speaker Pelosi, and Leader McCarthy for working on a bipartisan basis to pass this legislation for small businesses participating in the Paycheck Protection Program.
 
“We also want to express our gratitude to Chairman Rubio, Ranking Member Cardin, Senator Collins, Congressman Roy, Congressman Phillips, and other members of Congress who have helped to create and guide our implementation of this critical program that has provided over 4.5 million small business loans totaling more than $500 billion to ensure that approximately 50 million hardworking Americans stay connected to their jobs.
 
“This bill will provide businesses with more time and flexibility to keep their employees on the payroll and ensure their continued operations as we safely reopen our country.
 
“We look forward to getting the American people back to work as quickly as possible.”
 
SBA, in consultation with Treasury, will promptly issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing these legislative amendments to the PPP. 

PPP by the numbers: An update

Through the second round of PPP funding, over 4.5 million loans totaling $511.4 billion, made by over 5,458 different lenders, have been dispersed across the country, covering payroll for millions of jobs and supporting nearly every industry.

As of June 6th, there have been 98,072 PPP loans valued at over $10.2 billion dollars approved for Coloradans over the course of both rounds of funding. Average loan size in CO is a little over $103,194

Colorado :
Loan Count: 99,155
Approved Dollars: $10,232,212,836
Average loan size: $103,194

US :
Loan Count: 4,531,883
Approved Dollars: $511,382,171,979
Lender Count: 5458
Average loan size: $112,841

Top 3 Industries for PPP in #s:
1. Professional, Scientific, and Technical Services
2. Other Services (except Public Administration)
3. Health Care and Social Assistance 
Update on EIDL/PPP Notice
SBA says scrap the first version

Updates are awaited for the Procedural Notice on the interplay between EIDL and PPP, which was distributed last week. Please stay tuned; we will get the updated version to you as soon as we get it.

Colorado Bankers Association
303-825-1575 | 303-825-1585